New Fortress Energy looking for ‘strategic partners’ for Puerto Rico operation
The company disclosed its plans to the Securities and Exchange Commission on Tuesday.
New Fortress Energy Inc. announced a series of financing transactions that, upon closing, are intended to increase its liquidity and financial flexibility, including identifying strategic partners for one or more of its primary businesses, such as projects in Brazil, Puerto Rico, Jamaica, Mexico, Nicaragua, Klondike and FLNG 1, the company’s first fast liquefied natural gas (LNG) installation.
The company disclosed its plans to the Securities and Exchange Commission on Tuesday, citing an Oct. 2 announcement of “transformative debt and equity transactions totaling approximately $3 billion upon completion.”
“The company expects to explore with potential strategic partners financings, commercial ventures or asset sales that are intended to enhance the company’s liquidity and financial flexibility,” it told the SEC. “The company cannot provide assurance that its exploration will result in pursuing a transaction or that any transaction, if pursued, will be completed on attractive terms.”
New Fortress Energy began operations in Puerto Rico in 2019. The company entered the market to provide LNG to the island, particularly targeting the power generation sector as Puerto Rico sought to diversify its energy sources.
Since then, New Fortress Energy has been supplying LNG to the Puerto Rico Electric Power Authority (PREPA) and has established infrastructure to facilitate LNG delivery and storage on the island.
The company encountered challenges in the local market, butting heads with the Federal Energy Regulatory Commission over permits required to build its terminal in San Juan.
Last year, Genera PR, a subsidiary of New Fortress Energy, took over operations and maintenance of Puerto Rico’s publicly owned power generation fleet. This contract was awarded by the Puerto Rico Public-Private Partnerships Authority (P3A) with the goal of improving efficiency, reliability and reducing power costs across the island.
Genera PR manages the power plants previously operated by PREPA while also supporting Puerto Rico’s transition to renewable energy sources.
New Fortress Energy is scheduled to disclose its third-quarter results on Nov. 7.
